The UK Treasury Committee has initiated a call for evidence to assess the potential impacts of increased artificial intelligence (AI) usage in banking, pensions, and other financial services.
Recent figures from the Bank of England reveal that 75% of firms are currently utilizing AI, with an additional 10% planning to adopt it in the next three years. The introduction of ‘DeepSeek’ underscores the volatility and rapidly changing landscape of the AI market.
The inquiry will examine how City firms are currently employing AI and the innovations it could bring to the financial services sector. MPs will also investigate the implications for employment and how the UK stands in comparison to other nations in terms of competitiveness and regulatory approach.
Additionally, the Committee will assess whether AI poses risks to financial stability and explore the potential for increased cybersecurity threats. There is also a focus on necessary safeguards to protect financial consumers, particularly those who may be vulnerable to bias.
Dame Meg Hillier, Chair of the Committee, stated, “It’s critically important the City can capitalize on innovations in AI and continue to be a world leader in finance. We must, though, also be mindful of ensuring there are adequate safeguards in place to mitigate the associated risks, particularly for customers. This piece of work will allow us to see the full picture.”
The deadline for submissions is Monday, March 17.